The Reserve Bank of Zimbabwe (RBZ) has intensified its preparations to introduce a Central Bank Digital Currency (CBDC) through a phased approach, starting with consumer perception surveys to gauge public opinion on the proposed innovation.
The initiative follows a Cabinet decision made in November 2021, which mandated the central bank to explore the feasibility of a CBDC. Since then, the RBZ has undertaken study tours to countries with advanced digital currency systems and has drawn up a roadmap for its potential adoption in Zimbabwe.
In its latest update, the RBZ said: “The Reserve Bank of Zimbabwe (the Bank) is exploring the possibility of introducing a Central Bank Digital Currency (CBDC) in line with global trends. Accordingly, the Bank is conducting a CBDC Consumer Survey to solicit opinions on the design and nature of the CBDC and its overall acceptance by the public. You are therefore invited to participate in the survey.”
The bank assured participants that all information provided will be treated with the utmost confidentiality and used solely for research purposes relating to the design, nature, and acceptability of a CBDC in Zimbabwe.
A CBDC is a digital form of central bank money, pegged to a country’s fiat currency, and can be used for transactions just like physical cash. Unlike cryptocurrencies, CBDCs are issued and regulated by central banks, offering unique advantages such as enhanced financial access for individuals and more efficient systems for interbank settlements.
Globally, more than 10 countries have fully launched CBDCs, with China expanding its pilot project this year. Nigeria, Africa’s largest economy, rolled out its eNaira in October 2021.
Proponents say CBDCs could promote financial inclusion, particularly in underserved communities, by enabling low-cost or offline transactions via basic mobile devices. They could also facilitate faster and cheaper cross-border payments, streamline remittance processes, and improve the distribution of targeted welfare payments in times of crisis.
The RBZ said the survey marks a crucial step in determining whether Zimbabwe will join the growing list of nations adopting digital currencies.